“$41,000. That’s a conservative estimate for the total debt carried by the average U.S. household, including mortgages, student loans, auto loans, and credit cards. While this number is realistic, it paints a troubling picture when paired with today’s high interest rates.
If the Federal Reserve lowered interest rates to a more reasonable level, such as back to 1%, where they stood as recently as 2022, the average American household could save more than $1,200 per year in interest payments.
The Congressional Budget Office (CBO) confirms that rising interest rates are ballooning the cost of servicing the national debt. If the Fed brought rates back down to 1%, the federal government could save nearly $400 BILLION per year in interest payments alone. That’s money we could put toward infrastructure, Social Security, defense, paying off the National debt, or returning to taxpayers.
SOURCE: CBO Long-Term Budget Outlook, 2023 (Link)
Fed Chair Jerome Powell was willing to lower rates before the 2024 election;, yet now, with inflation declining and American families struggling, he refuses to do the same. Why? Inflation is no longer the emergency. Interest payments are draining household and federal budgets. It’s clear that the lack of willingness to be fair is a problem and raises serious questions.
BOTTOM LINE: High interest rates are a hidden tax on every American family and every American taxpayer. It’s time for Powell to stop playing politics and start helping the people.”